City Council Agenda Report
Meeting Date: February 3, 2026
From: Brian Saeki, City Administrator
Department: City Administration
Submitted by: Sara Sandoval, Management Analyst
Subject
Authorization to Order Agreements with AT&T Corp. and AT&T Mobility (AT&T) for California Network and Telecommunications Program (CALNET) Next Generation Services Recommendation
A. Approve and authorize the City Administrator to execute a California Department of Technology (CDT) Non-State Entity Service Policy and Agreement (NESPA) to self-certify the City meets the CALNET eligibility criteria; and
B. Approve and authorize the City Administrator to execute Authorization to Order Agreements with AT&T Corp. and AT&T Mobility for various telecommunications and network services, in substantially the same form as submitted, for a total amount not-to-exceed $630,000 for a threeyear term.
Background
On January 17, 2023, the City Council authorized the City to obtain telecommunications and network services for City facilities from AT&T through the CALNET NextGen Contract. Council approved the execution of various Authorization to Order Agreements (ATOs) with AT&T for CALNET NextGen services for a period of three years. With the three-year term coming to an end in 2026, the City must execute new ATOs in order to continue to take advantage of the competitive rates available through the State of California CALNET NextGen Contract.
CALNET NextGen is a competitively bid contract that provides a comprehensive array of competitively priced telecommunications and network services to public entities throughout the State. Under the State’s contract, any public agency is allowed to order services and products as set forth in the contract by completing and submitting an ATO Under State Contract prior to ordering services. Additionally, to establish CALNET eligibility, non-state entities are required to have a NESPA on file with the CDT CALNET Program. In accordance with Section
3.32.110(A)(5)(b) of the Vernon Municipal Code (VMC), the proposed ATOs with AT&T are exempt from competitive bidding, as services would be purchased from AT&T at the same price, terms and conditions as offered in a previous award from another public agency by competitive bid.
Opting into the services provided through CALNET NextGen and signing the related ATOs will allow the City to maintain its existing services and leverage the competitive rates available under the State’s Contract. The ATO Agreements will allow the City’s participation and will not affect any existing services since no upgrades or equipment changes will be required. If the City chooses not to order the necessary services under the CALNET NextGen Contract, the City will pay significantly higher service rates. Pursuant to VMC Section 3.32.030(A), Council approval is required, as the total value over the lifetime of the ATOs exceeds $100,000.
The attached ATOs have been reviewed and approved as to form by the City Attorney’s Office.
Fiscal Impact
The fiscal impact is not to exceed $630,000, with $210,000 budgeted for each year of the agreement. Approval of this action would require an appropriation of $105,000 for the remainder of the current fiscal year for the agreements in General Fund, Information Technology Division, Utilities Account No. 011-010-110-526010 from available General Fund Balance and will be budgeted in subsequent Fiscal Years.
Attachments
1. CALNET NESPA
2. CALNET AT&T ATO Form 19.1
3. CALNET AT&T ATO Form 20
4. CALNET AT&T DNCS ATO Agreement Extension
5. CALNET AT&T LEGACY ATO Agreement Extension